The Los Angeles Times from Los Angeles, California • 72

Growth trend by broad ago group ct porconlagt of total incrtatof Under 70 20 lo 40 mi over TV Industry Revenues and Profits Rise Stocks Off Unevenly in Light Trading NEW YORK A mi Income From 'Phone' Satellite Some Time Off FCC Tentatively Approves Program Providing Ownership by 10 Companies NEW YORK UP!) Whatever the outcome of 1H Period 1900-18 mm 31. sin present controversy over control of an orbiting satel Part IV WEDNESDAY MORNING, AUGUST 30, 1961 lite communications system, there is little possibility of any immediate profits for anyone, a financial publication said. mil Profit Sharing Is Old Story to U.S. Industry New to Auto Workers, but Procter Gamble Set Up Its Program in 1887 BY SAM DAWSON tJO to 39 Croupi 1 decrease) Source: U.S. Bureau of the Census Projected Prepared by the Inttitule ef life Iniuronte POPULATION AGE SHIFT Figures from the Institute of Life Insurance indicate significant change in the age structure of the American population is at hand with a noteworthy growth of young adults from 20 to 39 projected to 1975.

Upturn already is apparent in the 20-29 group, reversing a trend prevalent in the last two decades, the report stated. NEW YORK LR Profit sharing may be new to the Plans are under way to use earth satellites to beam telephone, radio and tele vision signals to any spot on earth where reception facilities exist. In the United States, the Federal Com munications Commission has tentatively but not finally -approved a plan to put ownership of such a system in the hands of 10 companies. Explanation Given During the weekend, 33 Democratic congressmen pe titioned President Kennedy to reject the plan on grounds it could lead to mon opolistic ownership and put American Telephone Telegraph in a top spot. A in its summer issue of Bell Telephone magazine discussed its proposed parti cipation in a satellite sys- auto industry.

But it's an old timer in some other industries and a highly controversial program in many ACCORDING TO DOYLE Customer Entitled to an Itemized Account BY WILLIAM QuestionWhen I buy or sell stock, is my broker permitted to send me a confirmation statement showing only the lump sum I re ceive when 1 sell, or pay when buy? My broker states that 95 of his accounts are handled in this August Building Shows 4 Gain Over Year Ago mannerwimouiqufsuuu. lu.tion on it. Ive never seen A. DOYLE ker does not have to item ize all that lnlormation on your confirmation statements. But he must provide all that miormauon if you request it.

So, as a matter of practice, most brokerage firms do send out confirmation state ments with all that informa- one tiat didn't. And vou are also entitled your transactions, if you ask Some brokers print this in formation on confirmation statements, as a practice. Some don't. Doyle answers representative letters of general interest. Distributed by United Features me, this is not satisfactory.

I would like to get an item- lzed statement showing theito the name of the brokerage price at which order was house on the other end of and People WASHINGTON tfV-Revenues, expenses and profits of the television industry increased In 19G0 over 1959, the Federal Communi cations Commission reported. Broadcast revenues totaled in 1960, 9 above 1959. Broadcast revenues comprise the sale of time, talent, and program material to advertisers. Total broadcast expenses of the TV industry last year were $1,021,500,000, an increase of 8.8 over the previous year. Broadcast Profits Broadcast profits before federal income taxes rose to $244,100,000, an increase of 9.8.

I Total broadcast revenues; of the three TV including the operations of their 15 owned and operated stations, totaled $640,700,000, an increase of 11.2. Broadcast expenses for this group rose 11.7 to $54,3,500,000 and profits before federal income taxes to $95,200,000, up 8.3. Of the entire industry's broadcast revenues of 75 or came from the sale of time and or 25, from sales of talent and program material to advertisers. Reported Seeking Tieup Officials of the Great Atlantic Pacific Tea food store midwest division, are reportedly seeking to inter est a San Diego discount store operator in setting up a discount store in which would handle the grocery concession. Harry Foster, president of Save-Co Veterans and Services Department Stores, said he has had "some discussions" with officials "as to the possibility of our being interested in coming into the midwest." There was no talk of A acquiring Save-Co, he said.

Two Stores Save-Co operates two stores, one in Phoenix and one in San Diego. Earnings came to $210,000 on sales of $20 million in the year just ended, Foster said. Foster declared A executives in Chicago showed him a prospective site "somewhere south of Chi-! cago. roster said the next move is for Save-Co to de cide whether it wants to move into the midwest. A board meeting is slated Sept.

21. Babcock Receives $1.2 Million Order Babcock Electronics Costa Mesa, has received a follow-on order for more than $1.2 million from Bureau of Naval Weapons. Contract is primarily for shipboard command control systems. Babcock's backlog now stands at $7.7 million, compared with $4.2 million a year ago. Should K- IP1 4 srsr! WASHINGTON (DJ) Spending on new construc tion projects in August showed little change from the July rate but topped such outlays for the same month last year by about according to the Com merce Department.

The agency said the value of new construction put-in-place came to a seasonally adjusted annual rate of in August, about the same as in July. Seasonal Patterns The actual value of con struction put in place in Au-i gust totaled up lro from July. Oflicialsi said this increase was about! in line with the usual sea sonal rise that occurs at this time of the vear. The Au gust total compared with an onllav of $5,205,000,000 in August of last year. Spending in August, for new residential buildings' and publicly-financed con- struction proiects followed U.S.

Seeks to Block Bank Merger WASHINGTON Wl The Justice Department sued to block the mercer of two big Chicago banks, Continental Illinois National Bank and Trust Co. and the City National Bank and Trust Co. Atty. Gen. Robert F.

Kennedy contends the merger, scheduled to take place Friday, would eliminate competition and tend to create a monopoly in violation of the Sherman and Clayton antitrust laws. The Justice Department asked Federal District court. in Chicago to issue an order forbidding the merger. The merged bank would become the ninth largest nationally, Kennedy said. nority of selected issues caught the fancy of traders Tuesday but the over-all market was cautious, mixed.

and a bit slower, based on statistics. Volume was mod erate. The question of which one or the liig ihree auto producers would be struck if any strike is to be called continued to breed hesitation on Wall Street. The Berlin crisis, while not as insistent as it was last week, still remained in the background; and Labor a i. traditional turning point for business and the market, lay right ahead.

The list was irregular all day. Turnover was a routine 3.16 million shares compared with 3.15 million Monday. Movements of the major steels and motors were narrowly irregular. The air-crafts declined fairly sharply now that the Berlin crisis seemed headed for negotiation. A number of oils backed away on news of a less fav orable profit split between Indonesia and the companies operating there.

31 New Highs The Dow Jones industrial average was off 1.86 points at 714.15. Of 1,236 issues traded, los ers edged out gainers by 449 to 460. New highs for the year totaled 31 and new lows 15. The Associated Press av erage of 60 stocks fell .4 of a point to 253.1. with indus trials down .7, rails off .1 and utilities unchanged.

The list of 15 most active stocks produced eight gain ers and seven losers. Thiokol was the most ac tive stock, up 2V-2 at 47V4 on 50.400 shares. Second was Brunswick, up 1 at 567s on 48,600 shares Third was Certain-Teed, up 2 at 58 on 45,400 shares Revlon Active Revlon was actively trad ed and up 3Vfc. Lockheed was sold heavilv and lost 1. Boeing and United Air craft each lost lV2.

Republican Aviation gained Vs, despite a big secondary, offering of 214,500 shares of the stock. Family Finance rose 2'8 on word of a proposed 2-for- 1 stock split. Xerox, which has been subject to recur rent stock split rumors, advanced 2V. American Exchange Prices Rule Mixed NEW YORK Prices on the American Stock Exchange were mixed Tuesday on volume of 1.25 million shares compared with 1.35 million Monday. Gains of lVa were posted for Associated Stationers Supply, Beau Brummel and Microwave Associates.

Todd Shipyards rose 194. Audio Devices took a loss of l3i. Down more than a point were Atlantic Research and Seeburg. July Life Insurance Sales Steady NEW YORK Life in surance purchases last month aggregated 000,000 virtually unchanged from July 1960, the Life Insurance Agency Management association reported. Purchases of ordinary life insurance at $4,268,000,000 represented a gain of $107 million and industrial life policy volume was up slightly but group insurance business fell $157 million to $1,268,000,000.

Vending Machine Firm Purchased Purchase of the inventory and other assets of the automatic vending machine op erations of United States Chemical Milling Corp. by the United Slates Automatic Merchandising Co. of Comp- ton was announced jointly. USAMCO issued 75,000 shares of its common stock to USCM in exchange for the vending machine assets under terms of a permit obtained by USAMCO from the California corporations com missioner. The operations of USCM is headquartered in Manhat tan Beach.

It manufacturers aero-space and commercial tern, and said flatly that "such a system would not be dominated by The Financial World, an investment and business weekly, pointed out the tremendous need for a satellite system, if only to handle a volume of overseas telephone calls growing at the estimated rate of 20 per year. "But profit potentialities are much harder to figure," the magazine continued. "The most likely prospective beneficiaries are the Bell System (which obviously plans to invest heavily in the satellite system) and other firms in the international communications business," the magazine said. "But for some time to come, the costs will outweigh any possible financial rewards," the magazine forecast. a 1 seasonal patterns, the department said.

Cumulative outlays for new construction in the first eight months of 1961 totaled $37 billion, compared with $36,100,000,000 in the 1960 period. Starrett Sells Stock Holdings At a meeting Tuesday in New York, stockholders of Los Angeles-based Starrett Corp. approved selling the firm's remaining common stock holdings of Food Giant Markets, and Pacific Coast Properties, Inc. Certain common stock holdings of Food Giant were sold in July, the combined transactions were made for $12 million resulting in a profit to Starrett of 828 before capital gains tax es. The proceeds of the sale, according to Albert B.

Par-vin, president, will give Starrett "a large cash balance for the operation and acquisition of new operating entities." Crestmont Cons. Tells 6-Mo. Loss Crestmont Consolidated Corp. reported for the first half of 1961 a loss of $61,218 in spite of the fact that revenues increased over the like period a year ago to $527,789 from $319,998 in the like 1960 period. Profit a year ago was $18,112.

Earnings were adversely affected by non-recurring costs involved in the aban donment of oil and gas leases, in replacing over two miles of gas transmission lines and in start-up expenses of Banquete Gas the company reported. BEACH 4216 Atlantic Ave. GArficl.l 48681 hlott. thru Fi for executed, the commission, transfer taxes, SEC fee and all other charges. Am I being a problem customer? Answer No, you're not.

This broker sounds like some kind of a nut. Under federal law the bro- Business Century Bank of West na Anrrplps has PlPf-ted Adele G. Stein of directors. to its board Regional manager of Monarch Life Insurance Co. for two years, Lyle E.

Robertson has been elevated to re gional sales vice president. Nesbitt Fruit Products, has named Harold A Harper distribution manager. Robert Long is established as executive vice presiaent and manager of Constitution Savings Loan Assn. in Mjnterey Park. Automobile Club of South ern California has promoted Lawrence J.

Desmond from controller to director of administrative services. The new Crenshaw-Pa cific Coast Highway office of Citizens National Bank will have William R. Becker as manager. Lloyd Fuglie, CPA of Ar cadia, has been elected treasurer of Rossmoor Leisure World, the senior citizen project in Seal Beach. Arthur A.

Johnson will di- Pacific Oil Gas Profit Increases Pacific Oil Gas Development Corp. reported for the fiscal year ended May 31 net income of $68,550, equal to 14 cents a share, compared with a loss of a year previous. more. The United States Auto Workers Union and Ameri can Motors Corp. have agreed in principle on a three year contract that in cludes a profit sharing plan set up in two funds.

One will finance increased fringe ben efits for the workers. The other will be put into Ameri can Motors stock an the workers' names. The union sought profit sharing in it3 last go-round with the industry three years ago. The companies would have none of it then. And General Motors, Ford and Chrysler still balked this year as American Motors' agreement was Management Proposal The history of profit sharing has been largely one of proposals by the management rather than labor.

Unions traditionally have preferred straight wage increases as more tangible and certain. The Treasury also usually stands to lose in tax receipts. In computing its tax returns a company is allowed to deduct contributions up to 15 of the annual compensation of the participants under the plan. Those companies who use some form of profit sharing more than 30,000 cite as advantages: workers have an incentive to help assure profits by cutting out waste or anything akin to featherbed-ding; discontent with wage scales is reduced somewhat; opposition to schemes to in crease productivity is re- duced; absenteeism usually drops. Given It Up But some companies that have tried profit sharing have given it up later.

Some found it cosUoo much, draining away profits of good years that could tide com panies over lean years. Others say it makes workers doubly discontented with management when profits and profit sharing didn reach expectations. Fast growing companies like to plow profits back into the business rather than share them. Some of the profit sharing plans distribute cash or other benefits immediately, as under the American Motors plan. But an estimated 25,000 of the plans have deferred payments usually holding up payment until the employee retires.

Procter Gamble, Cincinnati firm making soap, detergents and other products, started a profit sharing plan in 1887. Started in 1916 Sears, Roebuck in 1916 started its savings and prof it sharing pension fund, Eastman Kodak set up a wage dividend pian in 1912 ana recenuy aisinouiea record $48 million to its employees. Many of the plans include contributions by employees. Some of the plans make extra payments in recognition of length and size of such contributions. For example, last year Prentice Hall, a publishing firm, paid one employee $218,000.

Between 1949 and 1960 she had put $13,000 into the fund, and this had grown to $94,000 as the fund prospered. The company's contribution on her behalf since 1943 had grown to $124,000. Employees who get their payments after retirement usually enjoy the tax advantage on them of being in a lower bracket. Other firms that set up profit sharing plans long ago mciuae: Hen Howell, Mo torola, Zenith, Pitney-Bowes, Nunn-Bush Shoe, Jewel Tea, Lincoln Electric. Ca Drop Santa carloadings for week ending Aug.

26, 1961, were 20,750 compared with 20,821 for the same week a year ago. I Disney '61 Net May Set New Fiscal Record Net income of Walt Dis ney Productions, in the fiscal year ending next Sept 30 is expected to rise to be tween $2.40 and $2.60 a share with a probability per share earnings will be near the company's record of $2.51 re ported for fiscal 1958, Lawrence Tryon, treasurer, said. On the basis of the 023 shares presently out standing net income for the current year would amount to around $4 million. The number of shares is not ex pected to change materially in the balance of the fiscal period, Tryon said. Disney had a net loss of $1.3 million in fiscal 1960.

In fiscal 1958 when there were fewer shares outstanding net income was $3.6 million. Total Revenues Total revenues in the cur rent year are expected to be comparable to the previous record revenues of million achieved in fiscal 1959. Revenues in fiscal 1960 amounted to $46.4 million. Walt Disney Productions reported net earnings of $2.3 million or $1.46 a share on gross income of $43.8 million for the 39 weeks ended July, 1961. This compared with $323,151 or 20 cents a share on gross of $33.8 million for the 1960 period.

Hilton Hotels Net Rises to $2.92 a Share Hilton Hotels Corp. reported consolidated net profit of $11,698,222 for the six months ended June 30, equal to $2.92 a share on 3,810,988 shares of common stock. This compares with profits of $6,561,175, equal to $1.66 a share a year earlier. First half revenues in lybi totaled $117,662,147, com pared with $117,716,335 for the first half of last year. American.

Hawaiian Steamship Co. six months ended June 30 net profit $294,236 VJ. $737,368 in W60. Archer-Danielt-Midtand Co. vear ended June 30 net profit $3,737,730, or J2.35 a snare vs.

or a mar in 19o0. Central Vermont Public Service Corp. year ended July 31 net profit or $1 31 a share vt. $1,795,867, or $1.41 a share in 1960. Chicago, Burlington A Quincv Railroad Co.

seven months ended July 31 net profit $7,062,152, or $4.13 a share VS. $6,350,203, lor $3.72 a share in 1960. Denver Rio Grande Western Railroad Co. seven months ended July 31 net profit or OJ terns a aiicne vs. or 70 cents a share i960.

Family Finance Corp. year ended June 30 net profit or $2 98 a share vs. $5,467,262, or $2.3 a share in I960. Graham-Pai9e Corp, stockholders equity as of June 30. $17,874,415, or $2.11 a share vs.

$15,125,352, or $1 65 a share In 1960, ext udina effect of Mad son Square Gar den Corp. merger In April of that year. W. T. Grant Co.

six months ended July 31 net profit $90,998 v. $1,036,629, or 13 cents a share in I960. Howel Electric Motors Co. six months ended June 30 net profit $77,486, or 16 cents a share vs. $289,916, or 61 cents share in i960.

Kimberly-Clark Corp. quarter ended July 31 net profit $5,847,741, or 61 cents a share vs. $6,969,150, or 72 cents a share in 1960. Manpower, Inc. year ended June 30 net profit $848,721, or $1.41 a share vs.

$'21 657, or $1.20 a share in 1960. Royal American Corp, six months ended June 30 net profit $30,170 vs. $38,192 net loss In 1960. Skll Corp. six months ended June 30 net profit $655,218, or $1.16 a share vs.

$792,656, or 11.41 share In 1960. Tandy Corp. year ended June 30 net profit $736,404, or 47 cent than vs. $267,689 net loss in 1960. United States Plywood Corp.

quarter ended July 31 net profit $2,552,300. or 6 cents share vs. or 83 cents a share in 1960. Western Development Co. of Delaware year ended June 30 net profit or 35 cents share vt, $1,026,456, or SO cents a share in I960.

U.S. MARKETS TO CLOSE LABOR DAY All financial and commodities markets in the United States and Canada will be closed Monday, Sept. 4, for observance of Labor Day. The London stock market will be open. rect marketing for Dean Van iLiineS.

New' York Life Insurance Co. has named George E. An areas group representative in its Los Angeles office. Upped to executive status at Leach Corp. is John Bloom whose new job will be manager of marketing.

Debenture Offer Made WASHINGTON UP) The Federal National Mortgage Assn. is offering for sale $100 million 10-year secondary market operations deben tures, at 4.52 and $150 million in three-year debentures at A. The issues will be dated Sept. 11, 1961. The debentures of both issues will be in denominations of $1,000, $5,000, $10,000, $50,000 and $100,000.

Electronic Eng. Announces Net Profit of the Electronic Engineering Co. of Califor nia, banta Ana, lor the nrst six months of 1961 was $21 06.3, compared with a loss of $42,962 for the first six months of 1960. Sale3 for the first half to taled $2,497,000 compared with $1,665,000 for the same period in 1960. Officials said the second quarter earnings of $18,000 were low primar- because of high rate of Inew product development and because of technical dif Acuities on several Icontracts.

larger Risk? Income from oil and oll.ily Booklet Available "What Every Investor Should Know" rovalties after depletion showed an increase of 26 over 1960 and an increase of 210 over 1959. Is there a Here's a 16-page, illustrated booklet for every man and woman who buys or plans to buy stocks. Written in easily-understood language that gets right down to the point! Phone, write, or drop in at any of our jour offices for )our comphnentary copy. Of course there's a ritk in owning common utocks. The risk that you might make money.

The risk that you might lose it. But over the years, millions of people have taken that risk and found that it paid off. Can you afford that risk, yourself? Should you buy storks? That all depends on your own finances, your own situation. But if you'd like help in deciding, we'd like you to know that you ran always count on straight answer, yes or no here at Name. I ri(ae srnd me your Booklet hot Evrry INVESTOR Address.

City- Should Know" Telephone No I BATEMAN, ElCHLER 8c CO. 453 SO. SPRING LOS ANGELES 13 MA. 7-2291 Merrill Lynch, Pierce, Fenner Smith Inc. Member! New York Slock F.xchnge lhJ other principal Slock an Commodity Exchanger Los Angeles, 523 West Sixth St Milbank McFie, Vice President Hollywood, 6353 Hollywood Blvd Sim Grodin, Vice President Beverly Hills, 454 N.

Camden Drive Dinily Bell, Vice President Us Angeles (Westwood) 1013 Broxtofl Ave. Paul M. Hornbecker. Manager San Diego. 301 Street Edwin A.

Stephan, Manager la Jolla, 7918 Ivanhoe Avenue Robert 1. Sheeran, Manager Pasadena, 575 E. Green Street Gilbert F. Olson, Manager Fresno, 1125 Van Nest Avenue John Andrews, Manajer Santa Am, 2215 North Broadway Norman Dahl, Manager IUDONDO BEACH VrU2 S. Tie.

Ct. Hwy. ERontirr 8-5211 Tun In KFAC, PASADENA (M E. Grrrn St. SVrainore 3-1 1 11 Mtmhtr Coatt Stock Kctil0 tilt on your miin Ant, I to tJO p.m., "Suntrt girrnade products..